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Governor declares financial emergency in Detroit

Updated: Friday, March 1 2013, 09:12 PM EST
DETROIT (NEWSCHANNEL 3) - Friday afternoon, Michigan Governor Rick Snyder officially declared Detroit to be in a fiscal emergency, setting the stage for a state takeover.

Once the process moves forward a bit, it could end up with an Emergency Manager recommending the City of Detroit file for bankruptcy in what would be the largest city filing in U.S. history.

Governor Snyder hopes an Emergency Manager and some reorganization will stop that from happening.

Friday's announcement assures the City of Detroit will have an Emergency Manager, as while there's a ten-day window of appeal period, the GOvernor is ultimately the one who has final say.

The Emergency Manager will be heavily involved with the city's finances, putting together new plans, and perhaps even reducing salaries of elected leaders, or potentially laying off workers.

Due to a mass exodus over the last decade, the City of Detroit faces a $327 million budget deficit, more than $14 billion in long-term debt, and isn't bringing in the cash it used to.

That's something the Governor says can be fixed.

Mayor Dave Bing says he will take a look at the situation over the next few days, but conceded that a manager will come in, and that he's willing to work with a new partner to help the city.

That manager will likely be around for more than a year.

It seems clear that the Governor knows who he wants as a manager, but has declined to name names at this point.Governor declares financial emergency in Detroit